The South African rand advanced in early trade on Wednesday as gloomy jobs data put the dollar was on the defensive before a Federal Reserve interest rate announcement that will set the tone for markets globally.

At 0645 GMT, the rand traded at 18.4000 against the dollar , about 0.4% stronger than its closing level on Tuesday.

The dollar was down over 0.1% against six rivals after data showed on Tuesday that U.S. job openings fell for a third month in March and layoffs increased to the highest in more than two years.

The Fed is widely expected to raise interest rates by 25 basis points when it concludes a two-day meeting on Wednesday, with investors looking for signals the U.S. central bank will pause its rate increases.

No major South African economic data releases is due on Wednesday, so the rand is likely to reflect moves on overseas markets.

South Africa's benchmark 2030 government bond was little changed in early deals, the yield down 0.5 basis points at 10.190%.

 

(Reporting by Alexander Winning)